Asia PP market extends firming trend

The regional PP market open the new week with stable to firm trend as tight supply continue to support the market amid uncertain demand outlook in the region’s biggest buyer – China.

This morning, a major Middle East PP maker has lifted their offer for homo-PP cargoes to Vietnam by $10/t compared to last week to reach $890/t CIF Vietnam, LC AS term. A buyer received the new offer said, “We bid for $30/t lower but our supplier refused the bid immediately. They are willing to only give $10/t discount on deal at the moment. We think that the PP market might remain firm in the coming month, but we are not confident about second quarter outlook; therefore we might need to reconsider when it comes to purchase deep-sea cargoes.”

Another Saudi makers reportedly maintain their offer at $900/t level for homo-PP, CIF term. Buyers reported that the supplier appears to be not in the mood for negotiation. Meanwhile, a Chinese trader said, “We managed to conclude some coal based PP cargoes to Vietnam at $890/t CIF term after a week long negotiation. Demand in our home market has yet to pick up, but we believed that tight supply would provide a solid support in the near term.”

Import homo-PP prices to Southeast Asia market currently stand at $880-940/t CIF, L/C AS term.

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